Diamond Stone Platform: Accounts and Reporting

Date: 2026-11-11. Revision 1. Status: draft for the owner, the accountant and the auditor to review. Companion to docs/PLAN.md section 11 and docs/MODULES.md.

This document sets out how the rest of the system feeds the accounts, the accounting screens, and the reports for management, for IFRS for SMEs, for the Oman audit and for tax.

The software makes compliant books possible. Accounting policies, judgements and sign-off belong to the company's accountant and its licensed auditor. Every rule marked (accountant confirms) is a proposal until they agree it.

1. The principle

Nobody "does the accounts" as a separate job of typing. People do their work — send an invoice, receive stone, match a bank line, approve payroll — and each of those events posts its own entry. The accountant reviews, corrects by reversal, and closes.

One ledger. Double entry, whole baisa, OMR base currency. Every entry balances or is refused.
Every entry has a source. An entry points to the event that caused it and to the document behind it. From any figure in any report a person can tap down to the photograph or PDF.
Nothing is edited or deleted. A mistake is reversed and posted again; both remain visible.
Sub-ledgers always agree with the ledger. Customers, suppliers, stock, fixed assets, payroll and VAT each post through a control account. The system checks the agreement every night and at close; a difference blocks the close.
Posting rules are data, not code scattered around. One table says: this event, these accounts. The accountant can read it. Changing it needs approval and is logged.
Periods lock. After close, nothing posts to the period without two people reopening it.

2. How each event reaches the accounts

Dr = debit, Cr = credit. VAT lines apply where the supply is taxable. (accountant confirms the whole table.)

Selling

Event in the app	Who causes it	Entry
Quote sent, order confirmed	Sales	None. Shown as order book in management reports
Advance received from customer	Accountant matches bank	Dr Bank · Cr Customer advances (contract liability) · Cr Output VAT where a tax point arises
Goods delivered (control passes)	Driver's signed delivery, or bill of lading for exports by the agreed Incoterm	Dr Receivable · Cr Revenue · Cr Output VAT; advances applied: Dr Customer advances · Cr Receivable. Same moment: Dr Cost of sales · Cr Stock, at that lot's cost
Back-to-back order: loaded at the factory for delivery straight to the customer	Driver marks "Loaded"; shipping confirms	Dr Goods in transit · Cr Goods received not invoiced (owed to the factory). On signed delivery: revenue as above, and Dr Cost of sales · Cr Goods in transit. Stock in the yard is never touched. This is the common case (`docs/MODULES.md` section 12)
Customer pays	Bank match	Dr Bank · Cr Receivable; exchange difference to profit or loss
Credit note, return	Accountant, approved	Reverse revenue and VAT; goods back to stock at cost if resaleable
Customer claim accepted	Approved claim	Dr Revenue reduction or claims expense · Cr Receivable or provision
Debt unlikely to be collected	Month-end review	Dr Impairment loss · Cr Allowance for receivables
Samples sold (charged, and credited against a first order, by the store's setting)	Sample order paid and dispatched	Revenue when sold. When the credit is used: a discount on the order, recorded against marketing (`docs/STORE.md`). A deliberately free project box: Dr Marketing expense · Cr Stock

Buying and stock

Event	Who	Entry
Purchase order approved	Purchasing	None. Shown as commitment
Advance to supplier	Owner releases payment	Dr Supplier advances · Cr Bank
Goods received, or control passes at loading port	Warehouse receipt or shipping documents, by Incoterm	Dr Stock (lot) or Goods in transit · Cr Goods received not invoiced
Supplier bill recorded	Accountant	Dr Goods received not invoiced · Dr Input VAT · Cr Payable; advances applied
Freight, duty, insurance, clearing, inspection	Bills linked to the shipment	Dr Stock (spread over the lots by m² or by value) · Cr Payable. If the lot is already sold, the share goes to cost of sales
Import VAT and customs duty	Customs declaration	Duty to stock; VAT to input VAT or the import VAT account under the deferral scheme
Supplier paid	Owner releases	Dr Payable · Cr Bank; exchange difference to profit or loss
Breakage, count difference	Approved adjustment	Dr Stock loss · Cr Stock
Stock worth less than cost	Month-end test by lot	Dr Write-down expense · Cr Stock allowance
Supplier claim agreed	Claim closed	Dr Payable or receivable from supplier · Cr Stock or cost of sales

Transport

Event	Entry
Outside carrier's bill for delivery to the customer	Dr Delivery cost (cost of sales or selling expense, by policy) · Dr Input VAT · Cr Payable
Own truck costs: fuel, repairs	Dr Vehicle running costs · Cr Bank or payable
Delivery charged to the customer	Part of revenue on the invoice

People

Event	Entry
Payroll approved	Dr Salaries and allowances · Cr Net pay payable · Cr Social protection payable · Cr Deductions
Employer social protection share	Dr Staff cost · Cr Social protection payable
Salaries paid through the bank file	Dr Net pay payable · Cr Bank
Leave earned, end-of-service earned (where still due)	Month-end: Dr Staff cost · Cr Leave and end-of-service provisions
Expense claim approved	Dr Expense · Dr Input VAT if a valid tax invoice · Cr Staff payable
Staff advance or loan	Dr Staff receivable · Cr Bank; recovered through payroll

Assets, leases, finance, tax

Event	Entry
Asset bought	Dr Fixed asset · Dr Input VAT · Cr Payable
Monthly depreciation	Dr Depreciation · Cr Accumulated depreciation (automatic, from the register)
Asset sold or scrapped	Remove cost and depreciation; gain or loss to profit or loss
Rent of yard, showroom, office	Operating lease: Dr Rent on a straight line · Cr Payable. Lease classification decided once per lease (accountant confirms)
Bank charges, interest, LC charges	From bank matching rules
Loan drawn and repaid	Dr Bank · Cr Loan; repayments split between loan and interest
Month-end revaluation of foreign balances	Dr or Cr Exchange difference (unrealised). Money owed and bank balances only; stock and advances are not restated
Foreign invoice or bill settled at a different rate	Dr or Cr Exchange difference (realised)
International receipt short by bank fees, within tolerance	Dr Bank charges · Cr Receivable
VAT return filed and paid	Clear output and input VAT to VAT payable; Dr VAT payable · Cr Bank
Income tax for the year	Dr Tax expense · Cr Tax payable; deferred tax where it arises
Owner puts in or takes out money	Capital, owner's current account, dividends; legal reserve transfer at year end

What only the accountant posts by hand

Accruals and prepayments not covered above, provisions, corrections, year-end tax and reserve entries, opening balances. Manual journals are marked as manual, need a reason and an attachment, and go for approval above the limit or when dated in a closed period.

3. Chart of accounts

A ready-made chart for an Oman trading company, about 120 accounts, numbered so that the statements fall out of the numbering. The accountant edits it during setup; accounts used by posting rules cannot be deleted.

Range	Group	Examples
1000	Non-current assets	Vehicles, equipment, fit-out, accumulated depreciation, deposits
1100	Stock	Stone in yard, goods in transit, stock allowance
1200	Receivables	Trade receivables (control), allowance, supplier advances, staff, prepayments, input VAT
1300	Cash and bank	Each bank account, cash, cheques in hand
2000	Equity	Capital, legal reserve, retained earnings, owner's current account
2100	Non-current liabilities	End-of-service provision, loans due after a year
2200	Current liabilities	Trade payables (control), goods received not invoiced, customer advances, output VAT, VAT payable, payroll payables, accruals, tax payable, loans due within a year
4000	Revenue	Local sales, export sales, delivery charged, returns and allowances
5000	Cost of sales	Stone, landed costs on sold lots, stock losses and write-downs
6000	Operating expenses	Staff, rent, vehicles, marketing and samples, travel, communications, professional fees, depreciation, impairment of receivables
7000	Finance and other	Bank charges, interest, exchange differences, other income
8000	Tax	Income tax, deferred tax

Each line can also carry: customer, supplier, order, shipment, lot, employee, department. These tags are what make margin by order and by stone possible without extra accounts.

4. Accounting screens

All on the phone, in the same shell. Each screen follows DESIGN.md section 10: picture or shape first, exact figures always, the rest behind a tap.

Screen	For	Seen first	Tap into	Main action
Money overview	Owner, accountant	Cash today; owed to us and owed by us as two bars split by age; profit this month against last	Any figure opens what it is made of	—
Bank	Accountant	One unmatched bank line with its best match and a confidence ring	Other matches; split; create a bill or receipt	Match
Owed to us	Accountant, owner	A bar by age (current, 30, 60, 90+); customers ranked by overdue amount, each with a face	Customer statement; send reminder	Remind
Owed by us	Accountant, owner	A calendar strip of what falls due this week and next; suppliers ranked	Bill; purchase order; receipt	Prepare payment
Payment run	Accountant prepares, owner releases	Total, number of suppliers, bank balance after	Each payment with its bill and approval	Release (fingerprint)
Bills	Accountant	Photographed bills waiting, read automatically, with the three-way check as three ticks (ordered, received, billed)	The bill image beside the read fields	Post
Invoices	Accountant	Delivered and not yet invoiced first; then sent, viewed, paid as stage dots	The invoice as the customer sees it	Send
Journal	Accountant	Debit and credit columns with a balance bar that turns green at zero	Account picker by search; attach a file	Post
Ledger	Accountant, auditor	One account: opening, movement as a small chart, closing; entries by date	Entry → source record → document	Export
Entry	Accountant, auditor	The lines; who created and approved it and when; the source record as a card	The document; the reversal if any	Reverse
Stock value	Accountant, owner	Total value; bars by stone; lots older than 180 days marked	Lot: cost made of purchase, freight, duty; expected selling value	Write down
Landed cost	Accountant	A shipment's bills, and how they spread over its lots	Change the spread basis (m², value)	Apply
Fixed assets	Accountant	Assets as cards with a ring showing how much is depreciated	Asset: cost, life, monthly charge, photo, location	Add, dispose
VAT	Accountant	The return period as boxes with amounts; a due-date countdown	Each box → the invoices behind it; exceptions (missing TRN, late invoice)	Export return pack
Payroll posting	Accountant	The approved payroll as one entry preview	Per person	Post
Month-end close	Accountant, owner	Twelve steps as a ring; each step with a count of what is left	The list that clears each step	Close (owner signs)
Year-end	Accountant	Steps beyond month-end: stock count, provisions, tax, reserve transfer, roll forward	Each step	Close the year
Reports	Owner, accountant, auditor	Report tiles by purpose: Manage, Statements, Audit, Tax	The report	Export, share
A statement	All three	The statement as rows with this year and last; totals bold	Row → accounts → entries → document	PDF, Excel
Audit pack	Accountant, auditor	A checklist of schedules, each ready, missing or with differences	Each schedule	Build pack
Auditor requests	Accountant, auditor	Open requests with age; who owes the answer	Thread with attached documents	Answer
Budget and forecast (later)	Owner	Cash expected for 13 weeks as a line with a floor	What is in each week	—

Month-end close, the twelve steps

All bank lines matched; each bank account agrees to its statement.
Delivered orders all invoiced; no invoice without delivery (cut-off).
Goods received all billed or accrued; goods in transit confirmed against documents.
Landed costs applied to every shipment received.
Customers and suppliers sub-ledgers agree with their control accounts.
Stock lots agree with the stock account; old lots tested against selling value.
Receivables reviewed for impairment.
Depreciation run.
Payroll, leave and end-of-service provisions posted.
Accruals, prepayments and foreign-currency revaluation.
VAT accounts agree with the VAT report.
Accountant reviews the statements against last month; owner signs; period locks.

Each step shows a number left to clear. A step with a difference cannot be ticked without a written reason, which the owner sees.

5. Reports

Every report: runs for any period, compares with the prior period, opens every figure down to the document, exports to PDF (signed layout, English and Arabic) and Excel, and records who ran and exported it.

To manage the business

Report	Answers
Margin by order, customer, stone, lot, salesperson	Where do we make money?
Landed cost per m² by lot and supplier	What does the stone really cost us?
Stock ageing and slow lots	What is stuck?
Receivables ageing, days to collect, promises to pay	Who owes us, and how late?
Payables ageing and payment calendar	What must we pay, and when?
Cash position and 13-week forecast	Will we have enough?
Order book, customer advances held, supplier advances paid, open letters of credit	What is committed?
Sales by month, customer, country, stone	What is selling?
Expenses against last year and budget	What are we spending?

IFRS for SMEs financial statements

The complete set, with comparative figures:

Statement of financial position.
Statement of comprehensive income (or income statement and a separate statement).
Statement of changes in equity (or a statement of income and retained earnings where permitted).
Statement of cash flows (indirect method by default).
Notes: accounting policies and the supporting schedules below.

The system prepares the figures and the schedules behind the notes. The wording of the policies and judgements is the accountant's, kept as editable text that carries forward each year.

Note schedule produced	From
Property and equipment: cost, additions, disposals, depreciation by class	Fixed asset register
Inventories: by category, write-downs, amount expensed in the year	Stock lots
Trade receivables: ageing, movement in the allowance	Customer ledger
Cash and bank	Bank accounts
Trade and other payables, customer advances	Supplier ledger, advances
Employee benefits: end-of-service movement, staff costs, number of staff	Payroll
Revenue by type and by country	Invoices
Expenses by nature	Ledger
Leases: payments due within one year, two to five, later	Lease register
Borrowings and facilities, letters of credit, guarantees	Finance register
Related parties: balances and transactions, key management pay	Parties marked as related
Income tax: reconciliation of profit to tax	Tax working
Foreign currency: exchange differences in the year	Ledger
Commitments and contingencies	Open purchase orders, claims
Events after the year end	List kept by the accountant

For the audit

See section 6.

For tax

Report	Use
VAT return pack: each box with the invoices behind it, agreed to the ledger	VAT return
Sales and purchase tax registers	Tax Authority review
Import VAT and customs summary	VAT return and stock cost
Withholding tax register	Payments to foreign suppliers of services
Profit to taxable income working	Income tax return
Structured invoice file	E-invoicing (Fawtara) through an accredited provider

6. Oman audit and compliance

Researched on 2026-11-11 from the Commercial Companies Law text, PwC and KPMG tax summaries, the IASB's overview of the third edition and Omani press reports of official decisions. Items marked unverified could not be confirmed from a primary source and must be checked with the auditor before anything is built on them. Sources are in section 10.

What the law asks of the company

Requirement	Detail	What the system does
Audit	An LLC must appoint an auditor if capital exceeds OMR 50,000, or it has more than seven shareholders, or its documents require it, or holders of one-fifth of capital ask (Commercial Companies Law, Art. 278). Separately, the income tax return must be filed with accounts audited by an Oman-registered auditor, except for small 3 % taxpayers	Audit pack; read-only auditor access; request thread
Framework	IFRS generally; IFRS for SMEs permitted for companies with no traded securities (FSA Decision 2/2025). The choice and the reason are disclosed	A framework note carried in the statements
Third edition	Applies to years beginning on or after 1 January 2027. The 2026 year may still use the 2015 edition	A setting per financial year; transition entries as journals
Statements prepared	Within 90 days of year end, with a report on activity (Art. 275)	Year-end checklist with the date counted down
Approved by shareholders	Annual meeting within 180 days (Art. 281); resolutions filed within 7 days	Dates in the compliance calendar
Filing with the Ministry	The Ministry of Commerce may request audited statements, and has run a Financial Reports Service on the Oman Business Platform since January 2025. Unverified: whether yearly upload is compulsory for every LLC and by when	Statements exported in the layout the auditor signs; the calendar item stays open until the auditor confirms the rule
Legal reserve	10 % of net profit after tax each year until the reserve is one-third of capital; not distributable (Art. 274)	Year-end step proposes the transfer; reserve shown as its own equity line
Dividends	Only from audited statements (Art. 306)	Dividend entry refused for a year not marked audited
Records kept	10 years for accounting, tax and VAT records	Nothing is deleted; documents kept with their entries; retention date shown
Registers	Shareholders' register; beneficial owners at 25 % or more	Kept under Control → Company
Language	Unverified whether statements must be in Arabic. In practice they are issued in English or both	Statements and invoices produced in English and Arabic

Tax and payroll dates that tie to the accounts

Item	Rule	In the system
Income tax	15 %. One return and payment within four months of year end, with audited accounts. (3 % only if capital ≤ OMR 60,000, income ≤ OMR 150,000 and ≤ 25 staff)	Tax working report; calendar
VAT	5 %; quarterly return and payment within 30 days of the quarter end	VAT screen with countdown; return pack
Withholding tax	10 % on certain services, royalties and fees paid to non-residents; paid within 14 days after the month end	Flag on supplier and bill; register
E-invoicing (Fawtara)	From 1 April 2027 above OMR 5 million of yearly supplies; other VAT-registered businesses from 1 October 2027 (Tax Authority Decision 189/2026, as reported; one source gives 1 August 2027 — confirm)	Invoices structured from the first day; provider link added in time
Social protection	Employer 14.5 % and employee 8 % for Omanis; employer 3 % for non-Omanis (PwC, July 2026); paid by the 15th of the next month. Unverified: wage ceiling	Rates are settings with dates, not code
End-of-service	Non-Omanis: at least one month's basic wage per year of service (Labour Law, Art. 61), accrued as a liability. From 19 July 2027 a 9 % employer contribution to the Social Protection Fund is reported to replace it for future service; service up to then stays as a frozen liability, is paid out, or is transferred	Two methods per employee with a changeover date; accountant confirms
Wages	Paid through the Wage Protection System within three days of the period end	Salary file and a paid-on-time check
Personal income tax	5 % above OMR 42,000 a year from 1 January 2028; employers are expected to withhold. Rules not yet published	A withholding field reserved in payroll

Two points the standard settles

Receivables: the third edition keeps the incurred-loss model for trade receivables. It does not bring in expected credit losses. The impairment step reviews overdue balances for evidence of loss; it does not apply a percentage matrix unless the accountant chooses one as an estimate.
Leases: unchanged. Rented premises stay off the balance sheet as operating leases, expensed evenly, with future payments in a note.

The audit pack

One button builds a dated, locked folder for the year. Each schedule agrees to the trial balance or shows the difference.

#	Schedule	Shows
1	Trial balance, mapped to each statement line	Opening balances agreed to last year's audited statements
2	General ledger, full, with user, date and time on every entry	Excel and CSV
3	Journal listing for testing	Filters: manual, after close, round amounts, weekends, by user, above an amount
4	Bank reconciliations, every account, year end	With the bank's statement attached; list of banks for confirmation letters
5	Receivables: ageing by customer, receipts after year end, allowance movement	List for confirmation letters
6	Payables: ageing by supplier, payments after year end, bills dated after year end for goods received before	Search for unrecorded liabilities
7	Stock: every lot with quantity, cost built up, age, expected selling value; count sheets and differences	Goods in transit with shipping terms
8	Cut-off: last ten deliveries and receipts before year end and first ten after, with documents
9	Landed cost workings per shipment
10	Fixed asset register with additions and disposals and their documents
11	Payroll: monthly totals agreed to the ledger, bank files and social protection returns; end-of-service by employee
12	VAT: returns agreed to revenue and purchases; customs declarations agreed to imports
13	Customer and supplier advances by order
14	Leases, loans, facilities, letters of credit, guarantees	Contracts attached
15	Related parties: list, transactions, balances
16	Income tax working and status of past years
17	Claims, disputes and commitments
18	Events after year end; cash forecast for twelve months (going concern)
19	Control reports: users and roles, period reopenings, master-data changes, approval overrides
20	Minutes and resolutions; draft statements and notes

The auditor's report

The auditor writes it, under International Standards on Auditing: opinion, basis for opinion, going concern where relevant, responsibilities, signature and date. The system's job is to make an unmodified opinion achievable: complete records, agreement between ledgers, evidence behind every entry, and nothing changed after sign-off. The signed report and statements are stored against the year, which is then locked for good.

Compliance calendar

One list under Control, each item with an owner, a countdown and a Halo ring when it is near: VAT return (quarterly), withholding tax (monthly when it applies), social protection (15th), wages (3 days), statements prepared (90 days), income tax return (4 months), annual meeting (180 days), licence, commercial registration and chamber renewals, staff document expiries.

7. Controls an auditor relies on

Control	How it is built
No edit, no delete	Entries are append-only in the database; corrections are reversals linked to the original
Who and when	Every entry and every change to master data records the person, time, device and reason
Separation of duties	The ten rules in MODULES.md section 6; violations are impossible, not just reported
Period lock	Closed periods refuse postings; reopening needs two people and is listed for the auditor
Gapless numbering	Invoices, credit notes, receipts and journals number without gaps; voids stay in the sequence
Sub-ledger agreement	Checked nightly and at close
Master data changes	Bank details, credit limits, prices, posting rules: approved by a second person, with before and after kept
Evidence	The source document is attached at entry; a bill cannot post without its image
Backups and restore	Daily backups in a second location; a restore test each quarter, recorded
Access review	A quarterly list of who can do what, signed by the owner
Export integrity	Each exported report carries the period, the time, the person and a checksum

8. Going live

Chart of accounts and posting rules agreed with the accountant.
Opening balances loaded from the last audited statements: ledger, open customer and supplier items, stock by lot with cost, fixed assets, staff balances.
Three months run in parallel with the current books; statements compared line by line.
The auditor is shown the system, the audit pack and the controls before the first year end.
Only then does it become the books of record.

9. Decisions for the accountant and auditor

When control passes to the customer for each delivery term (the revenue point).
Delivery costs to customers: cost of sales or selling expense.
Basis for spreading landed cost: m² or value.
How old or damaged stock is tested against selling value, and how often.
Receivables impairment method.
Lease classification for the yard and showroom.
End-of-service: what remains due under the current law for each employee, and how it is measured.
Depreciation lives by asset class.
Functional currency OMR confirmed; rate source for USD and AED; and the eight currency points in docs/CURRENCY.md section 12.
First year under the third edition of IFRS for SMEs and the transition entries.

10. Sources

Commercial Companies Law, Royal Decree 18/2019 (Arts. 274–281, 306): https://decree.om/2019/rd20190018/
Mandatory audits for commercial companies: https://www.lexismiddleeast.com/pn/Oman/Mandatory_Audits_for_Commercial_Companies
Ministry of Commerce requests for audited statements (regulations): https://cms.law/en/omn/legal-updates/overview-of-the-regulations-to-the-commercial-companies-law
Financial Reports Service, January 2025: https://www.middleeastbriefing.com/news/oman-launches-three-digital-services-to-streamline-business-operations/
FSA Decision 2/2025 on IFRS for SMEs: https://www.omanobserver.om/article/1166425/business/markets/fsa-adopts-simplified-ifrs-standards-for-smes-in-oman
IASB overview of the third edition: https://ifrs.org/content/dam/ifrs/supporting-implementation/smes/2025-webcasts/overview-third-edition-ifrs-for-smes.pdf
KPMG on the third edition (no expected credit loss, leases unchanged): https://kpmg.com/xx/en/our-insights/ifrg/2024/ifrs-sme.html
PwC Oman tax summaries (return deadline, rates, VAT, social protection, withholding): https://taxsummaries.pwc.com/oman/corporate/tax-administration , https://taxsummaries.pwc.com/oman/corporate/taxes-on-corporate-income , https://taxsummaries.pwc.com/oman/corporate/other-taxes , https://taxsummaries.pwc.com/oman/corporate/withholding-taxes
E-invoicing dates, Decision 189/2026: https://www.omanobserver.om/ampArticle/1194374
Personal income tax from 2028: https://kpmg.com/om/en/insights/2025/06/oman-announces-the-introduction-of-personal-income-tax-effective-1-january-2028.html
Savings scheme replacing gratuity from July 2027: https://gulfnews.com/world/gulf/oman/oman-introduces-mandatory-savings-scheme-for-expat-workers-from-july-2027-1.500736953

The audit-pack list and the auditor's report description come from general knowledge of the auditing standards, not from a page read on this date. The auditor's own request list replaces it once received.

Documents (added 11 November 2026)

What a tax invoice must carry, the 15-day rule, credit notes, the data held now for e-invoicing in 2027, gapless numbering and the control over the company's own bank details are in docs/DOCUMENTS.md sections 2 to 4 and 10.

Currencies (added 11 November 2026)

Selling, buying and freight in US dollars and other currencies, the three rates and who owns each, short receipts, bank accounts per currency, landed cost and the month-end restatement are planned in docs/CURRENCY.md.

At a desk (added 12 November 2026)

The accounting screens of section 4 have a desk layout: docs/MONEY-DESK.md. It changes layout and input only, not what is posted, reported or controlled. Bank statement formats are the main open point (its section 10).